Chris explains that Bed Bath & Beyond stock hit a new 52-week low after disappointing first-quarter results. He wonders if the company is starting to flounder. Bill suggests that the reaction today is an overreaction, because the company has grown earnings during the last 10 years in a competent fashion by growing its various stores, and reducing its share count. He looks at the company from a larger perspective by explaining that all specialty retailers have been hit a bit this year. Yet, he wonders how the company will fare in the future because of e-retailers like Amazon.com(NASDAQ:AMZN).

Chris points to specialty retailer Williams-Sonoma(NYSE:WSM) as a company that has executed well in its traditional stores, and online. On this point, Bill doesn't believe that Bed Bath & Beyond's online presence is not there. The two talk about how purchasing bath products can be difficult online -- especially when touching towels. Chris was surprised, however, to learn that Pottery Barn's recent earnings results indicated that almost 50% of its sales were online. Overall, Bill thinks that Bed Bath & Beyond is still a stock worth a closer look.